Srg Global Limited · ASX:SRG
Srg Global — Euroz Hartleys Conference (March 2023)
19 slides from Srg Global's conference presentation, Mar 7, 2023
Slide 1: 7 March 2023
For personal use only 7 MARCH 2023
Slide 2: Diversified industrial services company
US For personal use only We are a diversified We bring an engineering The most sought-after industrial services mindset to deliver diversified industrial company critical services for services business major industry 2
Slide 3: Profile
PROFILE For personal use only OPERATING SEGMENTS 3,200 20+ People Industries Asset Maintenance 100+ 5 Mining Services Engineering & Construction Sites Countries OWNERSHIP STRUCTURE 11% Management / Board 900+ 400 53% Institutional Revenue ($m) Market Cap ($m) 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY For personal use only RECORD RESULT RETURNS FOR SHAREHOLDERS 1H FY23 EBITDA of $34m, up 26% on 1H FY22 EPS(A) of 3.0cps, up 31% on 1H FY22 EBIT(A) of $20.9m, up 31% on 1H FY22 Fully franked dividend of 2.0cps, up 33% from 1.5cps in 1H FY22 ROBUST CASH GENERATION STRONG OUTL
Slide 5: Earnings Growth
EARNINGS GROWTH For personal use only EBITDA EBIT(A) 35.0 21.0 20.9 33.0 34.0 19.0 31.0 18.2 17.0 29.0 30.2 15.0 16.0 27.0 15.6 27.0 26.5 ($M) ($M) 25.0 13.0 23.0 11.0 21.0 9.0 20.5 9.4 19.0 7.0 17.0 15.0 5.0 1H 2H 1H 2H 1H 1H 2H 1H 2H 1H FY21 FY21 FY22 FY22 FY23 FY21 FY21 FY22 FY22 FY23 5
Slide 6: Cash and Dividends
CASH AND DIVIDENDS For personal use only NET DEBT TO NET CASH DIVIDENDS (CPS) 2.0 38.0 2.0 38.1 34.0 30.0 1.5 26.0 1.5 22.0 18.0 20.5 (cents) ($M) 1.0 14.0 1.0 10.0 12.2 6.0 2.0 0.5 0.5 -2.0 -6.0 -8.4 -10.0 0.0 FY20 FY21 FY22 1H FY23 1H FY20 1H FY21 1H FY22 1H FY23 6
Slide 7: Acquisition
Sonal uSe on! SRS ACQUTSTTMONO
Slide 8: Market Leader in Asset Integrity & Reliability Services
MARKET LEADER IN ASSET INTEGRITY & RELIABILITY SERVICES For personal use only #1 in asset 65+ years of 600+ highly #1 integrity in asset& operating skilled full-time reliability integrity & history in employees Mackay services reliability Australia Moranbah Emerald services Gladstone Roma Brisbane K
Slide 9: Industry Leading Technical Expertise
INDUSTRY LEADING TECHNICAL EXPERTISE For personal use only Consulting Inspection & Testing Other Services Integrity & Reliability Non-Destructive Mechanical, Materials Inspection Condition Monitoring Training Services Engineering Testing & Product Testing Material testing to Training services to Eng
Slide 10: Highly Skilled Team of Technicians
HIGHLY SKILLED TEAM OF TECHNICIANS For personal use only Experienced and Tenured Management Employees Post Acquisition +23% General Manager Business Support Manager (Asset Care) (HR, QA, HSE, L&D, 600 3,200 Technical & Commercial) 2,600 20 13 25 10 State Manager State Manager (NSW, VIC, QLD) (WA, SA
Slide 11: Rationale
RATIONALE For personal use only Asset Care is the clear market leader in asset integrity and reliability services nationally with over 65 years of operating Market leader in asset history and select customer relationships spanning 25+ years integrity and reliability Leading position in key end m
Slide 12: With What We Do
WITH WHAT WE DO For personal use only Integrity & reliability engineering We bring an engineering Asset repair and Testing & mindset to deliver protection services inspection critical services for major industry Asset Care enables SRG to provide an end-to-end solution for asset maintenance services
Slide 13: Most Sought-After Diversified Industrial Services Business
MOST SOUGHT-AFTER DIVERSIFIED INDUSTRIAL For personal use only SERVICES BUSINESS LEADERSHIP HORIZON Zero Harm / ESG industry leader and recognised employer / partner of choice Domestic / International growth in Engineered Products across all SRG operating segments Selective strategic acquisition
Slide 14: Accelerates Shift Towards Annuity Revenue and Earnings
ACCELERATES SHIFT TOWARDS ANNUITY REVENUE AND EARNINGS For personal use only Asset Care Pro-Forma 1% 33% 42% 43% Revenue by 49% Business Mix1 18% 99% 15% Asset Maintenance Mining Services Engineering & Construction 1% 42% Revenue by Recurring 49% 51% 58% vs. Project Based1 99% Recurring Project Base
Slide 15: Step Change, Accretive Acquisition
STEP CHANGE, ACCRETIVE ACQUISITION For personal use only Pro-Forma 12-Months EBITDA Key Financial Highlights +21% 15.4 88.9 EPS(A) accretive, pre cost and revenue EBITDA and EBIT(A) 73.5 synergies, on a pro- margin accretive1 forma FY23E basis1 Asset Care has a Asset Care has capital-light b
Slide 16: Platform for Growth
FOR GROWTH “A COMBINED SRG GLOBAL AND ASSET CARE BRINGS TOGETHER For personal use only TWO HIGHLY COMPLEMENTARY MARKET LEADING BUSINESSES THAT ENHANCE AND ACCELERATE THE COMBINED GROUP’S 3 GROWTH AMBITIONS” 2 1 Leverage Technology Leverage Market Position Leverage Platform Data management Techni
Slide 17: Investment Proposition
PROPOSITION For personal use only End-to-end Diverse Annuity asset lifecycle market sectors / earnings capability geographies profile Highly scalable Capital light High yield business investment dividend model profile stock 17
Slide 18: SRG Global
For personal use only SRG GLOBAL srgglobal.com.au 18
Slide 19: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by SRG Global Limited (ABN 81 104 662 259) (SRG). By accessing this presentation you acknowledge that you have read and understood the following statement. This presentation contains general summary information about SRG. The infor